Crypto investment funds saw $2B in weekly outflows—the third straight week of declines. Is the bull run ending? | Credit: Getty Images. Key Takeaways Crypto investment products saw $2 billion in outflows, the worst weekly total in three weeks. Bitcoin and Ethereum ETPs took the biggest hit, accounting for more than $2 billion in combined exits. The U.S. drove 97% of the outflows, underscoring weakening institutional sentiment. For the third straight week, çrypto investment products have been hit ...

Core Insights - Institutional demand for regulated crypto investment products remains strong despite overall market volatility, with crypto ETP assets only dipping by 2.5% in October compared to a 5.5% decline in the overall crypto market value [1][3][10] Institutional Interest - Bitcoin ETPs now account for approximately 7% of total Bitcoin supply, driven by significant institutional interest following the approval of spot Bitcoin ETFs in the U.S. in early 2024, which opened access to larger capital bases [2][5][6] - The demand for Bitcoin ETPs is bolstered by digital asset treasury plays and unlisted funds, indicating a robust appetite from traditional finance and institutional investors [6][10] Ethereum Growth - Ethereum ETP assets have experienced nearly 90% growth this year, as investors diversify their portfolios following gains in Bitcoin [3][7] - The increasing demand for Ethereum is attributed to its status as the second most capitalized asset and its strong trading volume, making it a preferred choice among traditional finance investors [8][9] Market Trends - There is a noticeable shift from altcoin-specific products to basket ETPs that include Bitcoin and Ethereum, driven by geopolitical and macroeconomic uncertainties, leading to a "flight to quality" among investors [3][10][12] - Altcoin ETPs are seeing a decline in demand, while basket products are gaining traction due to their perceived safety in the current market environment [10][12] Future Outlook - The uncertainty surrounding macroeconomic and geopolitical conditions is expected to continue influencing investor behavior, with a cautious approach being adopted towards riskier assets [10][11][13] - Predictions for 2026 remain uncertain, particularly due to potential geopolitical tensions and economic policies from the U.S. [13]

Core Insights - Digital asset investment products experienced a significant rebound with $921 million in inflows over the past week, driven by renewed optimism regarding potential US interest rate cuts following softer inflation data [1][7] - Bitcoin products led the inflows with $931 million, while Ethereum products faced their first outflows in five weeks, totaling $243.9 million [5][7] Inflows and Trading Volumes - Global trading activity for exchange-traded products (ETPs) surged to $39 billion, significantly above the year-to-date weekly average of $28 billion, indicating strong investor confidence despite ongoing uncertainties [2][7] - The US accounted for the majority of inflows at $843 million, with Germany also reporting substantial inflows of $502 million, marking one of its largest weekly totals [2][7] Ethereum and Other Assets - Ethereum products recorded $169 million in outflows, marking a shift in investor sentiment after a period of strong inflows, although demand for 2x leveraged Ethereum ETPs remains robust [4][5] - Cumulative inflows for all Ethereum ETFs reached $14.35 billion, with assets under management at $26.39 billion, representing 5.55% of Ethereum's market capitalization [6]

Core Insights - The UK authorities are launching crypto ETPs, potentially late compared to the US, where spot Bitcoin and Ethereum ETFs were approved over a year ago [1][6] - Despite the anticipated positive impact on Ethereum prices, the market has not responded favorably, with ETH USD experiencing a decline [2][3] - The Financial Conduct Authority has lifted a four-year ban on retail access to crypto ETNs, allowing retail investors to purchase through familiar brokerage accounts, which could stimulate demand for Ethereum [7] Market Performance - ETH USD has decreased nearly 4% in the past week, trading below $3,900, and remains over $1,000 away from its all-time highs [3] - A critical support level for ETH USD is identified at $3,700, with local resistance at $4,250 that needs to be surpassed for an uptrend to continue [4] - Trading volumes on major exchanges like Binance and OKX have dropped by over 8%, indicating a bearish sentiment despite a bullish long-short ratio [5] Future Outlook - The success of Ethereum ETPs on the London Stock Exchange is contingent on the reception from major players like BlackRock and WisdomTree [6] - The potential for tax-free gains for retail investors could act as a catalyst for increased investment in Ethereum, possibly pushing prices above $4,000 and even $5,000 in the medium term [7]

21Shares, Bitwise and WisdomTree open UK retail access to Bitcoin and Ethereum ETPs following FCA approval https://t.co/7mc40QmAar ...

DeFi & L1/L2 Updates - Crypto.com Research & Insights 发布 DeFi+L1/L2 更新报告 [1] - Solana 在过去 12 个月内产生了 28.6 亿美元的收入 [1] - Solana 过去一年收入占总收入比例未提及，需进一步分析 代币与基金 - Tether 计划为一个 DAT 公司筹集资金，以收购其 XAUT 代币 [1] - Grayscale 推出了以太坊和 Solana ETP 的质押服务 [1]

Regulatory Approval - Grayscale 获得批准，可以为其现货以太坊 ETP 提供 staking 服务 [1] Cryptocurrency Market - 行业关注 Grayscale 的现货以太坊 ETP 的 staking 功能启用 [1]

Core Insights - Global exchange-traded product (ETP) assets remained resilient, holding above $200 billion for the second consecutive month in August, indicating strong investor appetite for regulated crypto products [1][3][5] - The divergence between Bitcoin and Ethereum products is attributed to temporary market phases rather than a structural shift, with Ethereum experiencing record inflows [6][9] ETP Market Dynamics - Bitcoin ETP assets under management closely mirrored the 6.5% decline in Bitcoin's price in August, showing stability compared to the more price-sensitive crypto-native investors [4][5] - Ethereum ETPs attracted nearly $10 billion in inflows over two months, driven by strong price performance and increased institutional interest [8][9] Investor Behavior - The current market cycle has seen a shift towards altcoins, with Ethereum leading the charge, while Bitcoin's dominance remains intact [7][11] - Altcoin ETPs have increased by 30% this year, indicating a growing risk appetite among investors for single-asset exposure rather than diversified basket products [10][11] Future Catalysts - Potential catalysts in the ETP space include the approval of additional crypto assets by the US SEC, which could lead to new staking products and broaden the range of offerings [2][12] - The evolution of yield strategies in Europe, particularly the integration of decentralized finance (DeFi) into structured products, is being explored by companies like Fineqia [2][13][14]

Core Insights - Digital asset Exchange Traded Products (ETPs) have reached a record-breaking $200 billion in assets under management (AUM) as of July, driven by strong market performance and increasing institutional demand [1][2] Market Performance - The strong performance of major digital assets, including Bitcoin reaching its all-time high and Ethereum trading near its peak, has significantly contributed to the increase in AUM [2] - Ethereum ETPs saw a remarkable 87% surge in AUM in July, with Ethereum's price increasing by 48% during the month and over 25% in the first weeks of August, leading to a price doubling over six weeks [3][4] Institutional Interest - There has been a notable rise in interest from institutional investors, particularly in digital asset treasury strategies, with Ethereum and Bitcoin being key focuses [4] - Since early 2023, AUM for crypto ETPs has increased tenfold, indicating a rapid maturation of the market, with a fourfold increase in AUM and a 50% rise in the number of products listed worldwide following the approval of Bitcoin and Ethereum ETFs [6] Investor Behavior - The decline in Bitcoin dominance by about 8% in the last four weeks suggests a shift in investor risk appetite, typical during "alt seasons" where altcoins outperform Bitcoin [5] - Altcoin-linked ETPs have outperformed basket products, reflecting changing dynamics in investor preferences [5] Regulatory Environment - Improving regulatory clarity is expected to lead to the introduction of new digital asset ETP products, particularly in the US, where Bitcoin and Ethereum spot products have recently been approved [7] - In Europe, the focus is shifting towards diversifying yield sources and optimizing yield, with expectations for a new wave of yield optimization products [8]

Core Insights - Fineqia International Inc reported a 41% increase in assets under management (AUM) for its crypto exchange-traded products (ETPs) in the last quarter, significantly outperforming the broader cryptocurrency market which saw a 24% gain, resulting in a 72% performance premium for structured products [1][3][4] Group 1: Market Trends - The increase in AUM reflects a broader trend initiated by the approval of Bitcoin Spot ETFs in the US in January 2024, appealing to investors seeking exposure to digital assets without the complexities of direct cryptocurrency holdings [2][4] - The approval of Bitcoin Spot ETFs has provided unprecedented visibility and access for traditional investors, reducing operational and legal frictions associated with direct crypto holdings [5][6] Group 2: Investor Sentiment - Despite Ethereum's weak price performance, Ethereum ETPs have shown strong demand, indicating a growing interest in crypto assets overall, driven by the success of Bitcoin ETFs [7][8] - Altcoin ETPs have lagged behind, but recent launches of Solana and Ripple ETFs in Canada suggest potential growth in AUM for altcoin ETPs in the coming months [9][10] Group 3: Future Outlook - Since early 2024, there have been consistent inflows into digital asset ETPs, with more issuers filing for other assets in North America, indicating a structural shift in crypto investing [11] - Even during downturns, such as Bitcoin's drop from $109,000 to $70,000, net outflows from Bitcoin ETPs were only about 15%, suggesting that these investments are largely long-term and will continue to attract demand [12]